The outlook was withdrawn

On July 30, Volkswagen Group of Germany announced its results for the first half of 2020. Due to the impact of COVID-19 epidemic, the company experienced a severe decline in sales and revenue.From January to June of 2020, the sales revenue of Volkswagen Group was 96 billion euros (about RMB 797 billion yuan), a year-on-year decrease of 23.2%.Pre-tax profit shrank 1.4 billion euros, or 11.6 billion yuan, compared with a profit of 9.6 billion euros a year earlier, as VW swung from profit to loss.In addition, Volkswagen's global sales totaled 3.89 million vehicles, down 27.4 percent from a year earlier.

Previously, tees, chief executive of Volkswagen group has 2020 target prospect said: "the Volkswagen group in 2020 deliveries will be flat with 2019, sales revenue to grow by 4%, business sales returns in the 6.5% to 7.5% between net cash flow to keep positive growth" on April 16, the Volkswagen group's announcement said that because of the uncertainty caused by COVID - 19 outbreak, will decide to withdraw in February of this year's 2020 earnings outlook.

According to official data, Volkswagen sold 1.59 million cars in China in the first half of 2020, down 17% compared with 1.92 million cars last year. Volkswagen sold 4.23 million cars in China in 2019.

The Chinese market is key

Due to the epidemic, Volkswagen group did not achieve the 2020 target outlook, but FAW-Volkswagen and SAIC Volkswagen did not fail to perform well during the epidemic period.Official data of FAW-Volkswagen recently showed that the sales volume of faW-Volkswagen in the first half of this year was 874,000 units. In June, the sales volume of its three brands was 185,000 units, up 5.3% year on year.Faw-volkswagen sold more than 100,000 cars in June alone, and faW-Volkswagen and SAIC Volkswagen won the first and second place respectively in June, according to data from the Federation of Automobile Manufacturers.

In addition to Volkswagen brands, FAW-VOLKSWAGEN Audi also contributes a lot to faW-Volkswagen sales.In the first half of 2020, the cumulative sales volume exceeded 300,000 (including imported Audi models). In June, Audi sold 67,888 cars in a month, among which Q5L and A6L sold over 10,000 cars in a month in June.

It is worth mentioning that Volkswagen's new sub-brand Jetta, which was launched in September 2019, sold 67,000 units in the first half of 2020 and 14,200 units in June alone, accounting for 1% of the Chinese auto market.

At the beginning of 2019, Volkswagen CEO Diess indicated that Volkswagen's market will be determined by the Chinese market.Volkswagen Group's market share in China will reach 20% in 2020, with a year-on-year growth of 1.2%.

Volkswagen chief Financial Officer Frank Witter said the second half was promising, with the company Posting a positive operating profit before special items at the end of the year, although second-quarter results would worsen further.In addition, Volkswagen group said that it plans to officially put the MEB platform electric car into production in Foshan and Anting in October 2020, and will launch the first ID. Series models in the Chinese market.